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Euribor US Spread

Updated dailyData needs: mediumlong onlyshort only
paper
2014
Source
Bollerslev, T., Marrone, J., Xu, L., Zhou, H. (2014). "Stock Return Predictability and Variance Risk Premia: Statistical Inference and International Evidence." Journal of Financial and Quantitative Analysis, 49(3), 633-661.
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In plain terms

Fear premium rich (VIX vs realized vol) -> buy intl index ETFs, hold 3-4 months.

How it works

Variance risk premium (option-implied minus realized variance) positively predicts equity-index returns, including non-US indexes, at a 2-4 month horizon.

No live results for this strategy yet. Charts appear once it has earned a top spot on at least one stock, either on its own or as part of a blend of several strategies.
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Data dependencies

  • Daily prices

    Adjusted-close OHLCV for every US-listed ticker; primary price feed.

  • Vix prices

    A data feed this strategy reads, refreshed on its normal schedule.

Expected edge

Reported return
R2 peaks at 2-4mo horizon
Tested over
2000-2011

Bollerslev et al. 2014 JFQA: significant predictability, R2 peaks at 2-4mo horizon.

Example tickers where this is likely to fire

Illustrative only, the signal fires based on the live data, not a fixed list.

Related families

Explore Euribor US Spread on alphactor.ai

See which tickers this family is currently firing on, with live signals and rankings.

For informational and educational purposes only. Not financial advice. Learn more